Data analysis is one of the fastest growing and most in-demand careers today. With the exponential growth of data across industries, companies are scrambling to hire qualified data analysts to help make sense of all that information. So it’s no surprise that data analyst roles tend to be very well compensated.
What is a data analyst?
A data analyst is responsible for collecting, cleaning and organizing large data sets from various sources. Their role involves analyzing those data sets using statistical techniques and programming languages to uncover insights, trends and patterns. The insights derived from a data analyst’s work are then communicated to stakeholders to inform business strategy and decision making.
Some common responsibilities of a data analyst include:
- Collecting data from various databases, software programs, social media platforms, etc.
- Cleaning and organizing data for analysis
- Analyzing large data sets using programming languages like Python, R and SQL
- Identifying trends, patterns and relationships in data
- Creating data visualizations like charts, graphs and dashboards to communicate insights
- Developing data models and algorithms
- Generating reports to summarize findings for stakeholders
What skills does a data analyst need?
To be a successful data analyst, there are several key technical and soft skills required:
- Technical skills: SQL, Python, R, spreadsheet programs like Excel, data visualization tools like Tableau, statistics, machine learning
- Math skills: Strong math foundation including statistics, algebra, calculus
- Analytical skills: Ability to analyze and interpret large, complex data sets
- Communication skills: Ability to clearly communicate technical findings to non-technical audiences
- Business acumen: Understanding of business objectives to provide actionable insights
- Problem-solving skills: Ability to develop solutions and strategies from data insights
What industries hire data analysts?
Data analysts are employed across virtually every industry as companies increasingly rely on data to drive strategy and decision making. Some top industries hiring data analysts include:
- Information technology
- Finance and insurance
- Healthcare
- Retail and ecommerce
- Marketing and advertising
- Government
Within these industries, data analysts may work for tech companies, consulting firms, hospitals, banks, retail chains, etc.
What is the average data analyst salary?
According to the U.S. Bureau of Labor Statistics, the median annual salary for data analysts and scientists in the United States as of 2021 is $99,230. However, data analyst salaries can vary significantly based on factors like:
- Industry – IT and tech industry data analysts earn the highest salaries on average.
- Experience level – More experienced mid and senior-level data analysts command higher salaries.
- Location – Data analysts in major metro areas earn more than non-metro areas generally.
- Company size – Data analysts at large corporations tend to earn more than small companies.
Here is a table summarizing average data analyst salary by experience level:
| Experience Level | Average Salary |
|---|---|
| Entry-level (0-2 years) | $67,000 |
| Mid-level (3-6 years) | $82,000 |
| Experienced (7-10 years) | $103,000 |
| Advanced (10+ years) | $123,000 |
As you can see, even entry-level data analysts straight out of school can expect to earn a very comfortable salary, with plenty of growth potential into the six figures as they gain more experience.
What are the top paying industries for data analysts?
While data analyst salaries vary across industries, generally the information technology and software industry offers the highest pay. According to BLS data, here are the top 5 highest paying industries for data analysts:
- Computer systems design services – Average salary $117,840
- Software publishers – Average salary $116,830
- Data processing and hosting – Average salary $116,210
- Computer and peripheral equipment manufacturing – Average salary $115,240
- Technical and management consulting services – Average salary $112,930
The abundance of data generated and used by tech companies means they are willing to pay top dollar for qualified data professionals who can help analyze that data and inform business decisions and product development.
Which companies pay data analysts the most?
In addition to tech-focused companies, many major corporations across various industries are top payers when it comes to data analyst salaries. According to Glassdoor salary data, some of the highest paying companies include:
- Facebook – Average data analyst salary $118,000
- Google – Average data analyst salary $116,000
- Adobe – Average data analyst salary $114,000
- Microsoft – Average data analyst salary $112,000
- LinkedIn – Average data analyst salary $109,000
- Apple – Average data analyst salary $107,000
- Netflix – Average data analyst salary $106,000
These household name tech giants have very large data analytics teams and deep pockets to attract top data talent. Their high salaries for data analysts reflect the competitive landscape for hiring the best in the field.
How much do data analysts make starting out?
For recent college graduates or those just starting out in data analytics, the salary outlook remains bright. Here are some average starting salaries for entry level data analysts:
- Entry level data analyst straight out of college – $65,000 per year
- Entry level business intelligence analyst – $68,000 per year
- Entry level analytics consultant – $77,000 per year
- Entry level data scientist – $95,000 per year
Even at the entry level, data professionals can expect to earn well above the median salary for recent college graduates, which is around $55,000 according to the National Association of Colleges and Employers. With some initial job experience, salaries for early career data analysts can quickly rise into the $70-80K+ range within 1-2 years.
What is the job outlook for data analysts?
In addition to lucrative salaries, the job growth outlook for data analysts also looks very promising. According to BLS projections, jobs for data analysts and scientists are expected to grow by 33% between 2020-2030 – much faster than the average for all occupations.
As technology continues to generate more and more data, and companies invest more in leveraging data analytics, demand for qualified data analysts will remain very strong. It’s one of the most future-proof careers given how integral data is becoming across industries.
Some top factors driving high demand:
- Exponential data growth requiring analysis and insights
- Increasing investment in big data analytics and AI technologies
- Competitive need to leverage data for strategic advantage
- Demand for quantifiable insights to inform business decisions
All signs point to data analytics being one of the hottest career fields for the foreseeable future. Those who pursue roles as data analysts will enjoy high pay, abundant job opportunities, and exciting work leveraging data to drive impact.
Conclusion
In summary, data analyst roles are very highly compensated, with average salaries nearing and exceeding $100K. While pay can vary across industries and experience levels, even entry level data analysts straight out of college can expect to earn $65K+ on average. With the exponential growth in data and urgent need for analysis, data analyst job growth is projected to outpace most other occupations as well. For those interested in a challenging, high-paying and future-proof career, data analytics is an excellent choice with outstanding salary and job outlook.
